How to find sum an d rate of interest if amount for two years are given?
Answers
Answered by
0
If the compounded amount is given for two years..We can obviously find that The principal amount will be same..So Principal amount will be P in both cases... By applying the formula of compound interest with those given Figures we will get two equations...Divide 2 equation with 1st equation.. Remember equation with more no.of years should be in the numerator and that of Less no.of years should be in the denominator..Now since p is common..it gets cancelled..paving us way to derive 'i'.. once we derive 'i' we should subsitute it in any of the 2 equations to derive the Principal amount..lets see how it works...
for example a sum will amount to 1000 in 2 years
and 2000 in 3 years.. subsitute it in compound interest formula.. Compounded amount = p(1+i)^n then 2 equations will be
1000 = P(1+i)^2.......(1)
2000 = P(1+i)^3......(2)
(2)÷(1)
2000/1000 =p(1+¡)^3/p(1+i)^2
After cancellation
2=(1+i)
i=1= rate of interest.....like this u ll find i and by substituting it in equation we will get sum also.. here im not continuing because this example which i took will not give result.mi just took some random numbers..hope this helps
for example a sum will amount to 1000 in 2 years
and 2000 in 3 years.. subsitute it in compound interest formula.. Compounded amount = p(1+i)^n then 2 equations will be
1000 = P(1+i)^2.......(1)
2000 = P(1+i)^3......(2)
(2)÷(1)
2000/1000 =p(1+¡)^3/p(1+i)^2
After cancellation
2=(1+i)
i=1= rate of interest.....like this u ll find i and by substituting it in equation we will get sum also.. here im not continuing because this example which i took will not give result.mi just took some random numbers..hope this helps
Similar questions